Derivatives exchange Eurex says November has become the most successful month for the Eurex Kospi Product based on the Kospi 200 options available on the Korea Exchange with a record daily volume of 14,636 on 4 November.

The total number of traded contracts since their launch on 30 August 2010 is more than 87,000.

Volumes are expected to rise as KRX and Eurex further develop the after-hours market for the derivatives contract.

In addition to improved bid ask spreads in the order book, one driver of recent volume growth has been the use of Eurex’s block trading functionality.

In order to encourage further participation, Eurex will extend the exchange transaction fee waiver as well as the special incentive market making scheme until 28 February 2011.

There are currently two active market makers supporting liquidity for the Eurex Kospi Product, with additional firms expected to join soon.

Eurex’s give-up/take-up functionality was made available for this product as part of Eurex Release 13. This feature allows member firms to transfer positions to one another on an intra-day basis.

The Eurex Kospi Product is a daily futures contract based on the Kospi 200 options available on the Korea Exchange. These futures contracts expire at the end of each trading day and any open positions are transferred to KRX to establish a position in the Kospi 200 option on KRX. This product cooperation between Eurex and KRX enables Eurex members to trade and clear Kospi 200 options during European and North American trading hours.